| Annual Report of the Virginia Central RR |
| as of October 1, 1861, |
| President's Report |
| |
| Report |
| Office Virginia Central Railroad Company |
| November 23, 1861 |
| |
|
To the Stockholders of the Virginia Central Railroad Company
|
|
|
| Gentlemen, |
|
The accompanying reports of the Treasurer, Chief Engineer
and General Superintendent of transportation, exhibit the details of
the year's operations of the Company, the general result of which is
as follows:
|
|
Revenue and Expenses
|
| The gross receipts for the fiscal year ending 30th
September, as will be seen by reference to the Treasurer's
statement, are |
$656,406.93 |
| Expenses of administration |
278,537.09 |
| Leaving a balance of nett revenue |
$377,869.84 |
| The above sum has been
applied to the payment of interest, dividends, investment in
sinking fund, reduction of former debt, and the prosecution of
the work from Jackson's River depot to Covington, tolls for the
use of the Blue Ridge railroad, &c., &c., as will appear
by reference to the Treasurer's statement, and leaving a large
surplus. |
| The cost of the road, including the grading of the
last ten miles from Jackson's River depot to Covington, and the
purchase of iron, together with the equipment up to the 30th of
September, as per Treasurer's statement, will be found to be |
$5,840,156.52 |
| Engineer's estimate to complete the grading, lay
the track, and construct a depot at Covington |
38,208.00 |
|
$5,878,364.52 |
| The whole distance from
Richmond to Covington, the Eastern terminus of the Covington
& Ohio railroad, is 205 miles, of which 17 miles is
comprised of the Blue Ridge railroad, constructed and owned by
the State, from Mecham's River to Waynesboro'. |
| Deducting the Blue Ridge
railroad, the length of the road owned by this Company is 188
miles. |
| The average cost of the road per mile, supposing
the engineer's estimate for laying the track, &c., &c.,
to be correct, will be |
$31,267.90 |
|
|
The gross receipts of the Company for the year are
$3,687.68 per mile, and the nett receipts are $2,122.86 per mile.
|
|
The expenses of administration consume 42.43 per cent. of
gross receipts.
|
|
Dividends
|
|
At the usual period of making the Spring semi-annual
dividend, the country was just on the eve of the aggressive war which
is now waged against us by the Northern portion of the old Union.
|
|
The anticipation of the troubles, which commenced about
that time, had already caused an interruption of the usual business
enterprises of the country, which affected the revenue of the Company
before the proclamation of President Lincoln. With the great
uncertainty as to future receipts, the Board thought it most prudent
to omit the Spring dividend, but the punctual payment of interest,
when it fell due, and the regular investment in the Sinking Fund, was
attended to as usual.
|
|
The Board thought it most prudent, in the present
condition of the country, not do declare a dividend of more than 3 per
cent. this Fall, although a large surplus was left on hand. By
limiting the dividend, which the stockholders are aware was payable on
the 15th instant to 3 per cent., it is probable that the regular
payment of dividends, semi-annually hereafter, will not be
interrupted.
|
|
Although the gross revenue of the Company for this year
is $22,323.62 more than last year, and the largest ever received,
there will not be as much profit as in former years, it being the
result of a large increase of transportation for the Government, at
rates which, to a considerable extent, were not remunerative, whilst
the great damage to the rolling stock and the superstructure of the
road are yet to be ascertained. The injuries to the cars, in the
transportation of troops, are not fully repaired, and the same may be
said of some of the breaches in the road, caused by the extraordinary
heavy rains which have so often occurred during the year; but still
the Board thinks that unless some unforeseen event occurs, the surplus
retained, and future receipts, will enable them to continue regular
semi-annual dividends.
|
|
The result of the year's operations may be regarded as
favorable, considering the low rates at which the immense number of
troops, and the heavy amount of provisions and munitions of war have
been transported for the Government.
|
|
The following extracts from the proceedings of a
Convention of the officers of several railroads of this State will
explain the action of your Board in the premises.
|
|
"Railroad Convention"
|
|
"By invitation of the President of the Virginia
Central Railroad, the following officers, representing the different
railroads in the State of Virginia, met in Convention at the Capital,
in the City of Richmond, on Friday, the 19th day of July, 1861, to
reconsider the decisions of the previous Convention of the Virginia
railroads, held on the 25th day of June, 1861; said Convention having
been called together to fix the rates of charge for transportation of
troops, munitions of war, and provisions for the 'Confederate States,'
and having decided upon certain rates, which were published in the
printed proceedings of the Convention."
|
| "Present |
Virginia & Tennessee R. R. |
R. L. Owen |
President |
|
Virginia Central R. R. |
E. Fontaine |
" |
|
Petersburg R. R. |
W. T. Joynes |
" |
|
|
C. O. Sanford |
Supt. |
|
R., F. & Potomac R. R. |
P. V. Daniel, Jr. |
Pres. |
|
|
Saml Ruth |
Supt. |
|
Richm'd & Petersb'g R. R. |
Chas. Ellis |
President |
|
South-Side R. R. |
H. D. Bird |
Supt. |
|
Richm'd & Danville R. R. |
Lewis E. Harvie |
Pres. |
|
|
Chas. G. Talcott |
Supt. |
|
|
"On motion, Wm. T. Joynes, President of the
Petersburg Railroad, was unanimously elected Chairman, and Chas. G.
Talcott, Superintendent of Richmond & Danville Railroad, appointed
Secretary."
|
|
"Col. E. Fontaine laid before the Convention the
following extract from the minutes of a recent meeting of the Board of
Directors of the Virginia Central Railroad."
|
|
"At a meeting of the Board of Directors of the
Virginia Central Railroad
|
| Present |
E. Fontaine |
President |
|
N. B. Hill |
Directors |
|
Wm. Overton |
|
Saml. Carpenter |
|
Dr. J. R. Woods |
|
Jacob Baylor |
|
|
"The following resolution was adopted:
|
|
"Whereas, the Railroad Convention, which met in the
City of Richmond on the 25th June, omitted to consider the question of
receiving 'Confederate bonds' for transporting the mail, and it
appearing that some of the charges adopted are higher in the opinion
of this Board than they should be under the present circumstances of
the country,"
|
|
"Resolved, therefore, That the President of
the Company be requested to invite another meeting to reconsider the
whole subject, in the City of Richmond, on the 29th day of July
instant." (At the suggestion of several of the Presidents of the
railroad companies, the time of meeting was changed for the 29th to
the 19th of July.)
|
|
Extract from the resolutions adopted:
|
|
"Resolved, That the several railroad
companies represented in Convention will transport troops and
munitions upon the plan indicated by the Quartermaster General, at the
following rates, viz: men two cents per mile, munitions, provisions
and material at half the regular rates, in force on the 1st of May,
1861, and that these rates, now adopted, will take effect from the 1st
day of July, 1861."
|
|
"Resolved, That in view of the present
condition of the country, and of the probability that the money at the
command of the Government may be required for other purposes, and
particularly to provision and keep in the field the troops called for
the defence of the Confederate States, the companies represented in
this Convention will receive in payment for the transportation of
troops, munitions and provisions, over the several roads at par, the
bonds or treasury notes of the Confederate States, whenever it is
deemed necessary in the opinion of the Secretary of the Treasury to
make payments in that manner."
|
|
"Resolved, That this Convention pledges each
Company represented, that they will give the precedence to troops and
munitions of war over all other transportation in the right to their
track, and that whenever necessary they will stop the transportation
of ordinary freight, and of the mail and passengers."
|
|
"Resolved, That the companies here
represented, agree to receive the bonds of the Confederate States in
payment for mail services, to the extent that a deficiency in the
revenues of the Post Office Department may require."
|
|
It is proper to state, that the reduction of charges
contemplated by the foregoing resolutions, involved quite as large a
pecuniary sacrifice as was reasonable to expect from the stockholders
of this Company in their corporate capacity, who, as citizens of the
Confederate States, are subject to the common burthens imposed on all,
and which they will bear as cheerfully as any other class amongst us,
but articles not contemplated have been carried at those rates, and
there has been a loss sustained in another way, which was not
anticipated. The urgent demand for transportation for the army has
made it necessary, to a very considerable extent, to return the
freight cars empty when there were large quantities of freight on the
line of the road wanting transportation, which would have paid the
Company full rates. The practical result in all cases where the return
of the cars was so hurried, that they were compelled to come unloaded,
was the receipt of only about one-fourth of regular rates. This is a
hardship from which the Company ought to obtain some relief, or
receive some compensation, especially when it is remembered that the
regular rates of which the Government only pays one-half were very
low.
|
|
The reduction of rates which the Board contemplated, and
was instrumental in having adopted by other companies, doubtless
caused a loss to their treasury, but they felt assured that the
patriotism of the stockholders would justify them in their efforts to
sustain the Government in the present struggle for independence.
|
|
Whole Debt of the Company
|
| Bonds secured by mortgage, viz: |
|
|
| Due in 1872 |
|
$194,000.00 |
| "
" 1880 |
|
100,000.00 |
| "
" 1884 |
|
921,000.00 |
| Debt to the Commonwealth, on account
of loan authorized by the Legislature |
210,000.00 |
|
{1,425,000} |
$125,000.00 |
| Deduct investments in Sinking Fund, not
including bonds of the Company purchased and cancelled |
|
21,050.00 |
| Total amount of mortgage debt |
|
$1,403,950.00 |
| Dividend bonds due in 1865, 1866 and 1875 |
|
224,382.00 |
| Floating debt |
|
180,367.11 |
|
|
1,808,699.11 |
| Deduct debts due to the Company |
279,116.20 |
|
| Cash on hand 30th September, 1861 |
24,410.52 |
301,526.72 |
|
|
$1,507,172.39 |
| Total liabilities last year, after
deducting debts due the Company, and cash on hand, was |
$1,531,521.48 |
| General Summary for 1861 |
|
|
| Total gross receipts |
|
656,406.93 |
| Deduct expenses of general administration |
278,537.09 |
|
| Tolls to the Commonwealth, as required by law |
21,751.21 |
|
| Interest |
101,549.93 |
|
| Investments in Sinking Fund |
30,050.00 |
431,888.23 |
| Surplus on 30th September, after paying regular
annual charges on the Company |
|
$224,518.70 |
|
|
The last Section between Jackson's River Depot and Covington
|
|
The Board is glad to inform the stockholders that there
is but little to do towards the completion of this last section of the
road. In the month of February, during the pending of the tariff bill
before the United States Congress, known as the "Morrill
Tariff," by which the duty on railroad iron was to be very much
increased, the President was fortunate in buying a very superior
American rail at a very low price: the rise in the price of iron
resulting from the passage of that bill, and the subsequent blockade
of our ports, was thus anticipated. The last of the rails necessary
for the completion of the road to Covington was received before the
blockade was determined on. The grading is completed, and the ties are
ready. The principal difficulty now in the way is to get the trains of
the Company released from the necessary demands of the Government
transportation, so as to be able to carry up the iron.
|
|
Covington & Ohio Railroad
|
|
In the last report, the Board informed the stockholders
that the Legislature, at the session of 1859-'60, appropriated the sum
of $2,500,000 to this work, being more than the aggregate of the three
first appropriations, and making in all the sum of $4,800,000. This
last appropriation was more than sufficient to have completed the road
to the White Sulphur Springs, and was thought to insure its final
construction to the Kentucky line on the Ohio river at the mouth of
the Big Sandy, but the occurrence of the war in which we are now
engaged prevented the Board of Public Works from realizing sales of
State bonds on such conditions as were prescribed and caused its
suspension: it is hoped that the suspension will be only temporary;
indeed, it is much to be regretted that there should have been a
moment's delay in the prosecution of that work. Not only the interest
of this State, but of the whole Confederate States, calls loudly for
its completion. It is hoped, therefore, that Congress will act on the
subject at its present session if it has power to do so. It is not
hazarding much to say that if this road had been completed, the enemy
would never have gotten possession of the Kanawha Valley, and that
Kentucky would now be identified with Virginia in the struggle for
Southern independence.
|
|
The grading, as far as the White Sulphur Springs, is so
nearly completed, that by the use of temporary tracks at a few points
the road would soon be ready for the rails.
|
|
The Board have only to add, that the conduct of the
subordinate officers, with a few exceptions, has been satisfactory.
|
|
By order of the Board.
|
|
E. Fontaine, President
|
|